Thanks to our partners Promotive, WickedFile, Maverick Shop Owners, and Overdryve
Why does the IRS really pick a tax return to audit? And if a CPA who does this for a living can still get dragged through a three-year fight, what chance does the rest of us have?
In this episode, Hunt Demarest, CPA, steps out from behind the desk to tell his own story — a three-year audit of his 2023 tax return that started with a suspiciously timed refund and ended with a win built entirely on paperwork. Hunt breaks down what gets a return flagged in the first place, the one habit that separates audits you win from ones you lose, and why "innocent" and "victorious" aren't always the same outcome — proven by a client who did everything right and still wrote a $25,000 check to the IRS.
Hunt also pulls back the curtain on what his firm's audit protection covers, why informational requests aren't the same as a real audit, and why a single missing signature nearly cost him a case tax law was already on his side of. Whether you're worried about a deduction on your own return or want to know what triggers an IRS letter, this episode is a real-time look at how audits actually play out — not the version you hear secondhand.
What You'll Learn...
(02:51) Hunt's own audit story begins — three years, one 2023 tax return
(03:58) Why the audit really happened — a refund, then a red flag a month later
(04:41) Getting flagged, part 1 — why large credits are an open invitation to audit
(08:24) Getting flagged, part 2 — the oversized expense line the IRS can't ignore
(09:48) Inside the process — what an IRS "information request" audit actually looks like
(15:06) The rule that wins audits — documentation, documentation, documentation
(19:15) Audits take time, and time is money — even when you win
(19:40) 100+ hours, one frivolous case, and the real cost of defending yourself
(22:28) The hardest truth — being innocent doesn't guarantee you'll win
(23:12) The $25,000 loss — when the IRS agent simply won't listen
(24:24) The call every shop owner dreads — when paying up beats fighting on
If you've ever wondered what actually happens after that letter shows up, why documentation is the difference between a two-month resolution and a three-year fight, and why sometimes the smartest move is knowing when to stop — this episode is essential listening
Thanks to our partner, Promotive
Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/
Thanks to our partner, WickedFile
Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/
Thanks to our partner, Maverick Shop Owners
You're working on growing a more profitable shop - that's critical. That's exactly what the 24-video Blueprint course by Maverick Shop Owners addresses - customers, sales, profit, people, systems, and freedom. Get free access for our listeners only at https://maverickshopowners.com/blueprint
Thanks to our partner, Overdryve
Overdryve is your AI-powered marketing operating system. It predicts slow weeks before they happen, automatically launches revenue-driving campaigns, tracks ROI down to the dollar, and optimizes performance in real time. Visit https://overdryvemarketing.com/Paar Melis and Associates – Accountants Specializing in Automotive Repair
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